Level 10
This widget could not be displayed.

Business & farm

A few comments:

  • When you say "wind down" are you meaning that you are closing the business and there will be no future activity?
  • It is not common for a small business to use the accrual method of accounting.  Especially since you will most likely receive a 1099 in 2019 and the IRS will be looking to match this on your 2019 tax return.
  • I recommend you use the cash method of accounting.  The benefit here is you only pay tax on the "net" of your income and expenses.  No sense paying the tax early especially if you have not received the cash (yes in your case you do have it, but you get the point).
  • Make sure you circle back with the Calif Franchise Board or the Secretary of State to close the business.
*A reminder that posts in a forum such as this do not constitute tax advice.*